Google CEO Sundar Pichai Says AI Boom Is Opening Doors For Bigger Startup Investments

Google CEO Sundar Pichai said the rapid rise of artificial intelligence is opening up more opportunities for Alphabet to invest in startups, often at a much larger scale than before. He pointed to companies like SpaceX and Anthropic as examples of where Alphabet is putting money to work.

“You know, SpaceX, Anthropic and so on. I think now with the AI shift, there are more opportunities on which we can deploy capital in a good way, and so we are doing that,” Pichai said.

Google has already seen strong returns from its early investment in SpaceX, which was valued at $12 billion in 2015 and is now worth about $1.25 trillion. The company has long invested in startups through GV and CapitalG. But with AI firms now requiring much larger funding, Alphabet is making bigger and direct investments, similar to Nvidia, Microsoft and Amazon.

SpaceX: A Standout Return For Alphabet

One of Alphabet’s biggest successes has been its early investment in SpaceX. Alphabet first invested in SpaceX in 2015. It put in $900 million at a valuation of about $12 billion.

In February this year, SpaceX merged with Elon Musk’s xAI in a deal valued at $1.25 trillion. Assuming Alphabet has held onto all of its shares, now its stake would be around $100 billion.

A few days ago, SpaceX confidentially filed for an IPO. The company is reportedly seeking a valuation of $1.75 trillion in what would be a record offering.

Anthropic: Rival That’s Also A Partner

Alphabet’s involvement with Anthropic, a rival to OpenAI that competes with Google in AI models, highlights the new dynamics of AI investing, where competition and collaboration often overlap.

Anthropic has committed to spending billions on Google’s tensor processing units (TPUs) and cloud infrastructure. In 2023, Google invested $300 million in the company for a stake of about 10%. A few months later, it added another $2 billion. Since then, Anthropic’s valuation has jumped from the single-digit billions to $380 billion, based on its latest funding round in February 2026, with Google continuing to invest along the way. Overall, Google has put in more than $3 billion into Anthropic and is reported to hold around a 14% stake.

Moving Beyond Traditional Venture Routes

Google parent Alphabet has long backed startups through its venture arms, GV and CapitalG. But the scale of investment is changing.

AI companies now require larger funding rounds, often millions or even billions

Alphabet is increasingly investing directly from its balance sheet

It joins other tech giants like Nvidia, Microsoft and Amazon in making large investments

This shows how capital-intensive the current AI race has become.

Looking Back At Waymo

Pichai also reflected on Alphabet’s autonomous driving unit, Waymo

-- Waymo raised its first external funding round in 2020, bringing in $2.25 billion

-- Secured another $16 billion in funding earlier this year

-- The Current valuation of the company stands at $126 billion

The Bigger Picture

Alphabet’s appetite for large-scale investments shows a shift in how Big Tech approaches innovation. As AI drives opportunity and competition, the company is willing to deploy more capital, while keeping a close eye on returns.

Disclaimer: This content is for educational purposes only and does not constitute investment advice, personal recommendations, or a solicitation to buy or sell financial instruments. All investments involve risk, including potential loss of capital. Investors should consult professional financial advisors and consider their personal circumstances before making any investment decision.